Banking News Desk
Kathmandu – Nepal Rastra Bank (NRB) has issued a public advisory urging borrowers to exercise caution and proper planning when obtaining commercial loans. Through a recent financial literacy notice, the central bank emphasized the importance of utilizing loans strategically to support productive business ventures rather than allowing them to become financial liabilities.
According to the NRB, commercial loans can be an effective tool for purchasing machinery, upgrading existing operations, expanding enterprises, and unlocking new business opportunities. However, the notice warns that such loans, if taken without sufficient planning or clear purpose, may lead to financial stress and become a burden.
“Business loans are not a luxury, but the basis of progress,” the NRB stated in its message. The central bank encouraged borrowers to channel funds into appropriate business areas and adopt sound financial discipline to enhance not only their own economic well-being but also that of their families.
The NRB further stressed the need for borrowers to engage in thorough planning, assess potential business risks, and develop a clear repayment strategy before proceeding with any commercial borrowing.
The advisory forms part of Nepal Rastra Bank’s ongoing efforts to enhance financial awareness and promote responsible lending and borrowing practices in the country’s business community.
